VIASPACE CEO Dr. Carl Kukkonen traveled to Nicaragua in August to participate in the formal power plant feasibility study being conducted by Pelican SA of Managua. The feasibility study team met at the plantation on the shores of Lake Nicaragua to assess the agricultural aspects of the project and to inspect potential sites for the power plant and survey the route for the transmission line to connect to the national grid.

The agricultural feasibility study team included experts from Nicaragua, Costa Rica, Europe and the United States. The team reviewed plans for planting, growing, harvesting, transporting and processing 284,000 tons of fresh Giant King Grass every year for the 12 MW biomass power plant. The team heard from the local Energia Reino Verde team that has been growing Giant King Grass in Nicaragua since 2012. Energia Reino Verde (English translation "Green Kingdom Energy") is the special purpose company that will own and operate the 12 MW biomass power plant and 2,100 acre Giant King Grass (GKG) plantation in Nicaragua.

The grid connection group of the feasibility study team also visited the plantation and examined potential sites for the power plant. They also conducted a survey for the route for the transmission line to connect to the Nicaraguan grid. The distance is approximately 9 km. The power will be sold to the Nicaraguan grid and potentially also to private customers. Nicaraguan law allows private customers to use the grid to deliver reliable electricity to them.

A potential Engineering, Procurement and Construction (EPC) contractor from the United States visited the plantation and power plant site to evaluate the project. Energia Reino Verde is interviewing several potential EPC contractors and hopes to make a selection after the feasibility study is completed.

Nicaragua is currently in a drought, but the Giant King Grass plantation is located on Lake Nicaragua with plenty of water for irrigation. Animal feeders throughout the country will likely face a serious shortage of animal feed in the beginning of 2015. The Nicaraguan partners are considering a major expansion of the Giant King Grass animal feed production to help meet needs for animal feed throughout the country. As part of the animal feed project, Giant King Grass was harvested and made into silage. Samples were also sent to Dairy One in the US for forage analysis.

Kukkonen reported, "I am very satisfied with the progress on the project in Nicaragua. We have an excellent team, and the external review by the feasibility study group will validate and improve our plan. This plantation and power plant will be a flagship for VIASPACE. We have other potential customers watching us closely and we expect to have similar projects in place in the future. VIASPACE will earn revenue from the Giant King Grass license fee and also generate earnings from a retained equity stake in the power plant."

VIASPACE Chairman, Dr. Kevin Schewe, commented, "I encourage all interested parties and investors to examine the new pictures that we are posting on our Facebook page showing aerial views of the where the 12 MW biomass power plant and 2,100 acre Giant King Grass plantation will be located including views of the Giant King Grass that is already growing there. We are proceeding with the animal feed side of the business in parallel with the 12 MW power plant and we show Giant King Grass being chopped to make silage as animal feed. This is our flagship project and business model because we will earn revenue from our Giant King Grass license fee and also generate earnings as an equity partner in the sale of electricity. In addition and very significant, we are going to demonstrate how the animal feed business and biomass electric power generation can be complementary businesses generating an even more robust economic profit related to the Giant King Grass plantation."

Dr. Schewe, concluded, "I commend Dr. Kukkonen and our partners in Nicaragua for having the vision and diligence to move this project forward with remarkable speed and success. There are many eyes watching this project and we believe that we are gaining additional recognition as a leader in this business space as its success unfolds. We are moving forward on so many other fronts as well and my support for this company is stronger than ever."

VIASPACE grows renewable Giant King™ Grass as a low-carbon fuel for clean electricity generation; for environmentally friendly energy pellets; and as a feedstock for bio-methane production and for green cellulosic biofuels, biochemicals and biomaterials. Giant King Grass is a proprietary, high yield, dedicated biomass energy crop. Giant King Grass when it is cut frequently at 4 to 5 feet tall is also excellent animal feed. The USDA granted approval for planting Giant King Grass throughout the US and cooperates in exporting by performing the required inspections and issuing the phytosanitary certificate needed for import into foreign countries. Giant King Grass is being grown in California, Arizona, Hawaii, St. Croix Virgin Islands, Nicaragua, South Africa, China, Myanmar, Pakistan and Guyana. For more information, please go to www.VIASPACE.com or contact Dr. Jan Vandersande, Director of Communications, at 800-517-8050 or [email protected]

Safe Harbor Statement

Information in this news release includes forward-looking statements. These forward-looking statements relate to future events or future performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. Such factors include, without limitation, risks outlined in our periodic filings with the U.S. Securities and Exchange Commission, including Annual Report on Form 10-K for the year ended December 31, 2013, and other factors over which VIASPACE has little or no control.

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